HB681 Alabama 2012 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2012

Title

Motor vehicles, title loan business, licensure and regulation, fees, fines, penalties, enforcement, Alabama Title Pledge Act

Description

Under existing law, title pawns and loans are regulated under the Alabama Pawnshop Act.

This bill would create the Alabama Title Pledge Act to regulate the title loan business.

This bill would require the Supervisor of the Bureau of Loans of the State Banking Department to establish a title pledge transaction form for the purpose of recording certain information concerning a title pledge agreement.

This bill would require the title pledge lender to maintain records of all transactions concerning pledged property.

This bill would allow the pledgor the right to redeem pledged property and provide the lenders right to the property if the pledgor fails to redeem.

This bill would limit the service charge a lender may receive for a title pledge service.

This bill would establish rules for title pledge lenders, require licensure of lenders and offices, provide grounds for suspension, and provide for license, fees, and penalties.

This bill would allow the Banking Department to adopt further rules.

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose.

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment.

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Subjects

Motor Vehicles